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POST OFFICE COMISSION

RAJ KUMAR (FINANCE MANAGER) (1393 Points)

20 June 2010

HELLO FRIENDS, PLS TELL ME WHETHER ADHOC DEDUCTION IS ALSO APPLICABLE ON THE POST OFFICE COMISSION AND WHICH FORM IS TO BE USED ITR-4 AND WHETHER IN ITR-4 IT IS TO BE SHOWN AFTER DEDUCTION ONLY.

PLS. HELP ME.

I AM IN VERY URGENT NEED.

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2 Replies

Amir (Learner) (4016 Points)
Replied 20 June 2010

Dear Sir,

Ad hoc deduction to agents other than insurance agents - An ad hoc deduction, at the rate of 50% of the gross receipts of commission should be given to the authorised agents of Unit Trust of India and the agents of the following securities :

(1) National Savings Certificates VIII Issue; (2) Social Security Certificates; (3) Post Office Time Deposit Accounts; (4) Post Office Recurring Deposit Accounts; (5) National Savings Scheme, 1987; (6) Post Office Monthly Income Account Scheme; (7) Kisan Vikas Patra; (8) Public Provident Fund Accounts; and (9) Deposit Scheme for Retiring Government Employees, 1989—Circular : No. 594, dated 27-2-1991.

Generally, the commission income is shown as "income from other sources" but undoubtedly the quantum of commission will have a role to play in determining whether it will be taxable as "Business or Profession" or "Other Sources".

If Business or Profession then ITR IV (Gross receipts should also be shown )

If Other Sources then ITR 1 (Net of deductions) or ITR2 (Gross receipts should also be shown) can be filed depending upon other incomes.